                                 CODE OF VIRGINIA

LICENSE REQUIRED FOR VIATICAL SETTLEMENT BROKERS; COMMISSION&#8217;S AUTHORITY;
CONDITIONS; RENEWAL APPLICATION AND FEE; REINSTATEMENT; WAIVER; FINGERPRINTING
(§ 38.2-1865.1)

A. No person shall act as a viatical settlement broker, or solicit a viatical
settlement contract while acting as a viatical settlement broker without first
obtaining a license from the Commission.

B. A resident or nonresident life and annuities insurance agent shall not be
prohibited from obtaining a license, and subsequently acting as, a viatical
settlement broker. Such licensed life and annuities agent applying for a license
as a viatical settlement broker shall comply with all provisions of this
chapter.

C. Application for a viatical settlement broker license shall be made to the
Commission in the manner, in the form, and accompanied by the nonrefundable
license processing fee prescribed by the Commission.

D. Each individual applicant for a viatical settlement broker license shall, at
the time of applying for a new license, be fingerprinted in a form and manner
prescribed by the Commission and shall provide personal descriptive information
to be forwarded along with the applicant&#8217;s fingerprints through the
Central Criminal Records Exchange to the Federal Bureau of Investigation for the
purpose of obtaining criminal history record information regarding such
applicant. The results of the state and national records search shall be
forwarded to the Commissioner or the Commissioner&#8217;s designee, who shall be
an employee of the Commission. The cost of fingerprinting and the criminal
history record check shall be paid by the applicant. If an applicant&#8217;s
application for a license is denied, the Commission shall provide a copy of the
information obtained from the Central Criminal Records Exchange to the applicant
upon request. The information provided to the Commission shall not be
disseminated except as provided in this subsection.

E. A business entity acting as a viatical settlement broker is required to
obtain a viatical settlement broker license. In addition to the other
requirements in this section, and before approving the application, the
Commission shall find that:

   1. The business entity has paid the fee set forth in this section; and

   2. The business entity has designated an employee, officer, director, manager,
   member, or partner who is a licensed viatical settlement broker as the
   individual responsible for the business entity&#8217;s compliance with the
   insurance and other laws of this title, and related rules and regulations of
   the Commonwealth.

F. The Commission may require any documents reasonably necessary to verify the
information contained in an application.

G. Except where prohibited by state or federal law, by submitting an application
for license, the applicant shall be deemed to have appointed the clerk of the
Commission as the agent for service of process on the applicant in any action or
proceeding arising in the Commonwealth out of or in connection with the exercise
of the license. Such appointment of the clerk of the Commission as agent for
service of process shall be irrevocable during the period within which a cause
of action against the applicant may arise out of transactions with respect to
subjects of insurance in the Commonwealth. Service of process on the clerk of
the Commission shall conform to the provisions of Chapter 8 (&#xA7; 38.2-800 et
seq.).

H. The license processing fee required by this section shall be collected by the
Commission, paid directly into the state treasury, and credited to the
&#8220;Bureau of Insurance Special Fund &#x2014; State Corporation
Commission&#8221; for the maintenance of the Bureau of Insurance as provided in
subsection B of &#xA7; 38.2-400.

I. Beginning January 1, 2021, each individual settlement broker shall submit
biennially to the Commission a renewal application in a form and manner
prescribed by the Commission, along with a nonrefundable renewal application
processing fee prescribed by the Commission, for the renewal of the license.
Licenses shall be renewed biennially based on the viatical settlement
broker&#8217;s month and year of birth. The license for a viatical settlement
broker born in an even-numbered year shall expire at the end of the
broker&#8217;s birth month in even-numbered years. The license for a viatical
settlement broker born in an odd-numbered year shall expire at the end of the
broker&#8217;s birth month in odd-numbered years. Any viatical settlement broker
license for which the renewal application and nonrefundable renewal application
processing fee have been received by the Commission and all other applicable
licensing and renewal provisions in this chapter have been met shall, unless the
license has been terminated, suspended, or revoked, be renewed for a two-year
period. Any viatical settlement broker license for which the renewal application
and nonrefundable renewal application processing fee have not been received by
the Commission shall automatically be terminated.

J. On or before May 1, 2021, and biennially thereafter, each business entity
licensed as a viatical settlement broker shall submit to the Commission a
renewal application, along with a nonrefundable renewal application processing
fee prescribed by the Commission, for the renewal of the license. Any viatical
settlement broker license for which the renewal application and nonrefundable
renewal application processing fee have been received by the Commission and all
other applicable licensing and renewal provisions in this chapter have been met
shall, unless the license has been terminated, suspended, or revoked, be renewed
for a two-year period. Any viatical settlement broker license for which the
renewal application and nonrefundable renewal application processing fee have
not been received by the Commission shall automatically be terminated.

K. The nonrefundable renewal application processing fee shall be paid in a
manner and in an amount prescribed by the Commission. The nonrefundable renewal
application processing fee shall be collected by the Commission and paid
directly into the state treasury and credited to the fund for the maintenance of
the Bureau of Insurance as provided in subsection B of &#xA7; 38.2-400.

L. An individual viatical settlement broker whose license terminates due to
failure to renew may, within 12 months from the renewal date, reinstate the same
license by submitting the renewal application and a nonrefundable reinstatement
processing fee equivalent to double the nonrefundable renewal application
processing fee.

M. An individual viatical settlement broker who is unable to comply with the
license renewal requirements due to military service or another extenuating
circumstance such as a long-term illness or incapacity may request a waiver of
those requirements. Requests for waivers of renewal requirements shall be made
in a form and manner prescribed by the Commission. Viatical settlement brokers
seeking a waiver of renewal requirements shall submit all documentation
specified by the Commission so as to be received by the Commission no later than
the last day of the renewal period. After the renewal period, viatical
settlement brokers who have failed to complete the renewal waiver requirements
may request a waiver from the reinstatement requirements set forth in subsection
L within the 12-month reinstatement period. The Commission shall approve or
disapprove the waiver request within 30 calendar days of receipt thereof, and
shall provide written notice of its decision to the applicant for waiver within
five calendar days of rendering its decision. Any waiver granted pursuant to
this section shall be valid only for the renewal period or reinstatement period
for which the waiver request was made.

N. Each applicant for a viatical settlement broker license shall provide
satisfactory evidence that no disciplinary action has resulted in the suspension
or revocation of any federal or state license pertaining to the business of
viatical settlements or to the insurance or other financial services business.

O. In the absence of a written agreement making the broker the viator&#8217;s
agent, viatical settlement brokers are presumed to be agents of viatical
settlement providers.

P. A viatical settlement broker shall not, without the written agreement of the
viator obtained before performing any services in connection with a viatical
settlement, seek or obtain any compensation from the viator.

HISTORY: 2001, c. 706; 2003, c. 717; 2008, c. 213; 2016, c. 552; 2018, c. 131;
2019, c. 675.